RIG - still in a giant bear flag

Transocean (RIG) has been matching the NYSE composite index since the June low. If the main indexes do rollover in the coming few weeks, then RIG will break the bear flag..and a move into the mid 30s seems a given.


RIG, daily

Summary

First target for the bears remains a break of the flag, $46
Secondary target, take out the June low of $39.

A good company, but will greatly suffer if the US economy does slip into recession in Q3/4. If Oil prices also weaken, then RIG could even hit 30/25, although the latter seems more likely in spring 2013 than autumn 2012.